The Devki Group of Companies has withdrawn its offer to lease Mumias Sugar Company.
In a statement issued on Friday, 4th June, Narendra Raval (Guru), the Devki Group chairman, said that the company had found it worthwhile to take out its application following the public interest that the matter has attracted.
“As a local investor with deep understanding of the local operations, we had expressed interest in reviving the miller, following an invitation by the receiver-manager.
“However, given the ongoing public interest, which the matter has attracted and the call for a publicly run bidding, we have found it worthwhile to take out our application.”
Raval, however, noted that Devki would express interest, “should the exercise be conducted in consultation with all stakeholders”.
He added: “Our interest in the company is to revive it and ensure that it is running for the benefit of all stakeholders, including the farmers and the local communities.”
The company planned to put Ksh5 billion into the collapsed sugar miller.
The giant miller was placed under receivership by KCB Group in September 2019 after it failed to clear loans amounting to Ksh545 million.
Eight firms participated in the leasing tender, which was eventually won by Devki Group.
However, some politicians had argued that Devki Group has no experience in sugar milling and called for public participation.
The withdrawal now sends KCB back to the drawing board.